Question

1) In August 2000 kg of a material were introduced to a process at a cost of RM5/kg, and 200 hours labour were spent at a cost of RM12/hour. Overheads are absorbed at the rate of RM3/labour hour.
Normal losses are incurred at the rate of 5% of input and lost units can be sold for
RM0.8 per kilogram and 1,700 units were produced.
Required
(a) Prepare the process account to record the above transactions
(b) Determine the value for process
i) Normal loss
    ii) Abnormal loss
     iii) Cost per unit for the
     iv) Finished goods

i need the answer and explaination too.tq

Answer 1

SOLUTION:-

a)

	Qty	Rate	Amount (RM)		Qty	Rate	Amount (RM)
To Material	2000	5	10,000	By Normal loss (2000*5)	100	0.8	80
To Labor (200*12)			2400	By Abnormal loss 2000-10.-1700	200	6.8	1360
To Labor (200*3)			600	By finished Goods	1700	6.8	11,560
Total	2000		13,000	Total	2000		13,000

  

b) The given above

(i) Cost Per Unit for Process = RM 6.8/kg

(ii) Normal loss = RM 80

(iii) AbNormal loss = Rm 1360

(iv) Finished Goods = RM 11,560

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